Sell immediately or store to get good prices, farmers told

Cotton growers in the state have been advised to sell immediately or store their produce taking into account the cost of storage and interest on stocks among other things.

The results of an analysis carried out by Tamil Nadu Agricultural University, through its Domestic and Export Marke Intelligence Cell, showed that cotton kapas prices would have very small increments for the next three months.

The price in October 2006 was expected to be around Rs 2,050 per quintal of LRA5166, as against the prevailing rate of Rs 1,950. When the new crops come from North India from October, there would be slight decline in prices and from January 2007 there would be an increasing trend, it said.

Currently the ruling price was rs.1950 per quintal and by storing and selling during september and october, growers can get a prices of rs.2050 and in this background, farmers can take a suitable decision either to sell immediately or store for another two months, the analysis said.

The cell analysed the monthly data of market prices of the past 12 years that prevailed in Tirupur Regulated Market for the variety LRA-5166.

The demand for cotton in Tamil Nadu is 65 lakh bales, as against the production of four to five lakh bales per year. The deficit was outsourced from Gujarat, Maharashtra, Andhra Pradesh, Karnataka and imports from USA and Egypt.

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